Fidelity insurance offer tailor-made coverage to businesses depending on the need and nature of work.The policy provides comprehensive coverage against various risks arising from fraud and the dishonest act of an employee or group of employees such as loss of money, property, securities or other assets, computer fraud, forgery, loss to customers etc.Following are the features of fidelity insurance – What are the Features of Fidelity Insurance?įidelity insurance provides coverage against financial losses suffered by the organisation due to fraudulent act employees.
A business that requires the collection of personal information from customers.The following business can avail fidelity insurance and get the benefits of policy as these businesses are more vulnerable to the risk of employee frauds – Minimum of five employees need to be there to avail this cover.Įvery business having employees to handle cash and payment processes will require fidelity insurance cover. Floater policy: Floater policy guarantees a group of employees with one amount of guarantee is given across the group.Basically, this type of policy is issued to well-established businesses. Blanket policy: Blanket policy covers a group of employees without the names of the guaranteed person.Coverage in this type of fidelity insurance policy will be decided based on each employee’s responsibilities and position. Collective policy: Under the collective policy, coverage is provided against the business losses caused due to fraudulent acts by a group of employees.Individual policy: Under an individual policy, coverage is limited to losses due to fraud or dishonesty of an individual employee.Following are the types of fidelity insurance plans available. Fidelity insurance plans are available in four types. Types of Fidelity InsuranceĪvailing fidelity insurance is one of the parts in a business’s risk management practice. Some of the examples of business losses include theft of money, theft of business inventory and using business cash for personal profit etc.
The policy compensates such losses to business owners within the limitations of the policy. What is Fidelity Insurance?įidelity insurance or fidelity bond insurance is a business insurance product that provides protection against business losses caused due to employee dishonesty, theft or fraud. Let’s learn more about fidelity insurance. However, businesses can be protected from these risks by availing fidelity insurance.
Though such employees are only the minority part of the workforce, employee thefts and fraudulent acts can result in huge business losses. There can be many reasons for an employee to turn dishonest such as financial crisis due to company separation, restricting company, dissatisfaction and frustration with career growth or any other financial worries. ‘Breach of trust’ by employees is one of the major risks faced by businesses. Any successful business is built on trust and personal relationships. Though it’s an overwhelming experience, it involves a lot of risks. Business owners put in a lot of hard work to grow a successful business.